Southern Exposure Ltd. begins operations on January 2, 2016. During the year, the following transactions affect shareholders equity:

Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared mentioned in items 4 through 7 above. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts

Options are:

Prepare the shareholders equity section of the statement of financial position as at December 31, 2016.

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1. Southern Exposure's articles of incorporation authorizes the issuance of 931,800 common shares, and the issuance of 104,400 preferred shares, which pay an annual dividend of $1.80 per share. 2. A total of 251,400 common shares are issued for $5 a share 3. A total of 14,000 preferred shares are issued for $14 per share. 4. The full annual dividend on the preferred shares is declared 5. The dividend on the preferred shares is paid 6, A dividend of $0.10 per share is declared on the common shares but is not yet paid 7. The company has net income of $163,100 for the year. (Assume sales of $783,500 and total operating expenses of $620,400.) 8. The dividends on the common shares are paid 9. The closing entry for the dividends declared accounts is prepared